Waste and energy 'early priorities' for Green Investment Bank

The waste sector looks set to be one of the early beneficiaries of the Green Investment Bank (GIB), along with offshore wind and non-domestic energy efficiency.

Nick Clegg has targeted waste as one of the key areas for green investment

Deputy Prime Minister Nick Clegg revealed that these three areas were "possible early priorities" for the GIB as he disclosed further details on how the bank would work.

Speaking at the Climate Change Capital in London this morning (23 May) he also announced that investments would be able to be made from April 2012, and that the Government was looking at the potential for using the GIB to help deliver the first stages of the Green Deal.

"In the initial period, investment decisions will be made under interim governance arrangements, which Vince Cable will set out in more detail shortly," he said.

Clegg also revealed that the Government would fast-track legislation to ensure the bank remained robust and operationally independent. "The Government is determined to get this new bank right, but equally to make progress quickly, avoiding unnecessary delay."

The GIB will have operational independence under the leadership of a new board as soon as state aid clearance has been approved. It will then be able to undertake a range of transactions, including equity, debt and risk mitigation products.

The initial £3 billion capital guaranteed by the Government by 2014-15 should enable the bank to catalyse an additional £15 billion of investment in green infrastructure.

Finally, Clegg said that the bank will have borrowing powers from April 2015, on the basis that the government target for debt to be falling as a percentage of GDP has been met.